Lockheed Martin Corporation (LMT) has received a $5.4 million contract from the U.S. Navy to design and deliver second-generation anti-submarine training targets.
The targets, known as MK39 Expendable Mobile Anti-submarine Warfare Training Targets, or EMATTs, are used by air and surface crews for unrestricted, open-ocean and on-range anti-submarine warfare training. Designed to simulate the movements and sounds of diesel submarines, EMATTs help crews maintain their critical anti-submarine combat skills.
The EMATT contract was awarded to Lockheed Martin for the first time in 1982. The company performs work on the contract at its facility in Marion, Massachusetts. The order will boost the fortunes of the Electronic Systems Segment of the company. The segment designs, develops and integrates hardware and software solutions for advanced sensors, decision systems and weapons for air-, land- and sea-based platforms.
In the recently reported fourth quarter of 2010, Electronic Systems segmental sales increased 7% year over year to approximately $4 billion driven by higher volumes of tactical missile programs, readiness and stability operations, and surface naval warfare programs. This was partially offset by lower volumes of fire control systems, air defense, simulation & training and other logistics, ship & aviation systems and undersea warfare programs.
Lockheed Martin is the largest U.S. defense contractor with a platform-centric focus that guarantees a steady inflow of orders with a leveraged presence in the Army, Air Force, Navy and IT programs. Also, the company’s focus on debt repayment, an ongoing share repurchase program along with an increasing dividend will continue to shore up shareholder return.
However, we believe that budget deficits and political uncertainty make future defense budgets vulnerable to cutbacks. The company presently retains a short-term Zacks #3 Rank (Hold) that corresponds with our long-term Neutral recommendation on the stock.
Based in Bethesda, Maryland, Lockheed Martin is a global security company that designs and produces ballistic missiles, interceptors, target missiles and reentry systems with unmatched reliability.
Lockheed Martin’s focus on operational excellence helps produce affordable high-quality systems and services. It leads the industry in performance and domain expertise in strategic missile and missile defense systems. The company mainly competes with Northrop Grumman Corporation (NOC) and The Boeing Company (BA).
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